Many may be feeling like we are in uncertain
and fast changing times. In some senses we may be. In other ways, markets and
the economy are performing as predictably as ever.
Great wealth has been created over the past decade. No matter how much you have been able to earn, save, and invest, you don’t want to lose it. So, how do you preserve it?
Predictable Cycles Vs. Evolutionary Change
Social, economic, and financial changes are always happening. Nothing really stays static. However, there is a difference between routine rotations in cycles versus changes that are evolutions which may alter the new normal and future.
The ability to distinguish between these two
is critical for not only being able to invest profitably, but to preserve
wealth, and avoid lackluster performance which will drag you down over
time.
These changes apply to banks, gold, stocks, and even real estate.
There are constant industry and market cycles
in action. The boom, bust, recovery, and rebound cycle. While the context
varies, we often see this in 7 to 14 year turns.
Then there are macro cycles and changes. Many overlook these and are caught off guard by them. Even if they are predictable based on longer historic data. Think of 200 year cycles.
Then there are feature changes. Some may be fads, others may be new additions to our world. This may range from pandemic quarantines and the need for more space at home to the remote work shift, to Airbnb as an alternative rental strategy, or smart locks and thermostats, solar, and mobile applications.
What’s Different & The Same In Real
Estate?
Real estate is still a hard, tangible asset
with long term value. It can be flipped and leased for profit.
Single family homes, multifamily income
properties, and mortgage loan debt are all a part of this.
Real estate is a great place to store wealth, and to generate passive income and strong yields from. None of that has changed.
Then there are changes in technology, trends, and in demand features. Many of which center around emerging technologies. New software and cloud computing solutions have brought more efficiency to management and operations, as well as improvements in investor engagement.
Then there may be AI technologies which
aren’t that smart, and which are destroying some companies and funds without
them even realizing it.
In demand property features and trending locations are always changing. As is pricing. Some temporarily, and some more permanently. Where the distress and most supply is versus the most growth is always changing too.
Summary
Preserving wealth can be even more important
than high yields. Although, you need competitive returns to preserve wealth as
well.
In this respect we can still count on real
estate. Traditional strategies still work, though the details may be changing.
Some for a moment, and others for the long term. Invest with those that see the
difference.
Investment
Opportunities
Find out more about investing in secured debt and real estate, go to NNG Capital Fund.
If you are an Accredited
investor and
would like to learn more about how to become a Capital Partner with NNG Capital
Fund, Click here to set up a
discovery call today!
Image by Glen Kelp from Pixabay
Article Source: https://nngcapitalfund.com/finding-the-high-ground-preserving-wealth-in-changing-times/